CE SHOP FINAL PAPER EXAM QUESTIONS ACCURATE ANSWERS FULL SOLUTION
CE SHOP Final Examination TEST 2026/2027
Questions and Answers Verified Solutions Latest
Update
Question:
" abutting.
Answer:
"Land sharing a common border Ex. Many neighbors find that fences make abutting properties more
tolerable.
Question:
" acceleration clause.
Answer:
"Allows a lender to demand immediate and full payment of all debt owed if a buyer defaults Ex.
When Wendy stopped making home loan payments, her lender told her she must pay off her entire
balance or risk foreclosure.
Question:
" accession.
Answer:
"The addition of value to property through labor or the addition of new materials, including an
increase in land through natural processes Ex. Jonathan's property borders a bay. The bay receded,
and Jonathan gained an extra 10 feet of property to his land through accession.
Question:
" accessory use.
Answer:
,"An incidental or subordinate use to the primary use of the property Ex. Andy's military bunker in
his back yard constituted an accessory use of the property.
Question:
" accounting.
Answer:
"One of the fiduciary duties, accounting means an agent is accountable for any funds or properties
entrusted to the agent. This is a duty that survives termination of an agency agreement. Ex. Cameron
accepted an earnest money deposit from his buyer. His duty of accounting means that he must
safeguard the funds and handle them according to the agreement with his client and the policies of
his firm.
Question:
" accretion.
Answer:
"Land build up over water by sand, silt, or gravel Ex. Jillian's property grew through accretion when
a landslide wiped out an adjacent creek.
Question:
" accrued items.
Answer:
"Expenses that are accruing but are not yet payable (e.g., property taxes) Ex. At closing, accrued
items must be accounted for on the settlement statement. If the seller has accrued expenses not yet
payable, the amount accrued will be a seller debit and buyer credit.
Question:
" acknowledgment.
Answer:
"A requirement for deed transfer; a public official must acknowledge the grantor's signature Ex.
Gary purchased a duplex. The grantor signed the deed; a notary public acknowledged his signature.
,Question:
" acre.
Answer:
"43,560 square feet Ex. The Jones farmhouse was on 10 acres. Their parcel had 435,600 square feet.
Question:
" active fraud.
Answer:
"Intentional misstatement of a material fact Ex. ""Sure, the foundation is perfectly safe!"" Lisa said,
even though she knew full well that there was a crack the size if Toledo in it.
Question:
" act of waste.
Answer:
"Abuse of a property by a person who holds possession through a life estate Ex. When Minerva
inherited the historic mansion and turned it into an illegal video gaming parlor, this was an act of
waste that caused her to lose title to the property.
Question:
" actual notice.
Answer:
"Express notice given directly to a person Ex. Karen told her neighbors she would be moving; this
was actual notice.
Question:
" addendum.
Answer:
, "An addition to a real estate contract that's added before contract acceptance Ex. Steve decided to
ask for the washer and dryer after all, so he asked his broker to write up an addendum to the sales
contract.
Question:
" adjustable rate mortgage (ARM).
Answer:
"A mortgage with a rate that adjusts based on changes in a market index Ex. Caleb had a 5/1 ARM.
His loan had a fixed interest rate for the first five years, and after 5 years, it could change annually
depending changes to the market index.
Question:
" adjusted basis.
Answer:
"The final basis for taxing purposes computed by taking acquisition costs plus capital improvements
and subtracting depreciation taken Ex. When Mark computed the adjusted basis in his property, he
had to subtract $10,000 in depreciation he had taken over the years.
Question:
" adjustment.
Answer:
"The dollar value or percentage added to or subtracted from the sales price of a comparable to arrive
at an indicated value for the subject Ex. Whether the adjustment is made for a "good" or a "bad"
feature, it is made to the comparable, not to the subject.
Question:
" adjustment date.
Answer:
"The date on which the interest rate changes on an adjustable rate mortgage. Ex. Karey made sure to
refinance before her adjustment rate. Rates had dropped and she could get a better rate than the one
CE SHOP Final Examination TEST 2026/2027
Questions and Answers Verified Solutions Latest
Update
Question:
" abutting.
Answer:
"Land sharing a common border Ex. Many neighbors find that fences make abutting properties more
tolerable.
Question:
" acceleration clause.
Answer:
"Allows a lender to demand immediate and full payment of all debt owed if a buyer defaults Ex.
When Wendy stopped making home loan payments, her lender told her she must pay off her entire
balance or risk foreclosure.
Question:
" accession.
Answer:
"The addition of value to property through labor or the addition of new materials, including an
increase in land through natural processes Ex. Jonathan's property borders a bay. The bay receded,
and Jonathan gained an extra 10 feet of property to his land through accession.
Question:
" accessory use.
Answer:
,"An incidental or subordinate use to the primary use of the property Ex. Andy's military bunker in
his back yard constituted an accessory use of the property.
Question:
" accounting.
Answer:
"One of the fiduciary duties, accounting means an agent is accountable for any funds or properties
entrusted to the agent. This is a duty that survives termination of an agency agreement. Ex. Cameron
accepted an earnest money deposit from his buyer. His duty of accounting means that he must
safeguard the funds and handle them according to the agreement with his client and the policies of
his firm.
Question:
" accretion.
Answer:
"Land build up over water by sand, silt, or gravel Ex. Jillian's property grew through accretion when
a landslide wiped out an adjacent creek.
Question:
" accrued items.
Answer:
"Expenses that are accruing but are not yet payable (e.g., property taxes) Ex. At closing, accrued
items must be accounted for on the settlement statement. If the seller has accrued expenses not yet
payable, the amount accrued will be a seller debit and buyer credit.
Question:
" acknowledgment.
Answer:
"A requirement for deed transfer; a public official must acknowledge the grantor's signature Ex.
Gary purchased a duplex. The grantor signed the deed; a notary public acknowledged his signature.
,Question:
" acre.
Answer:
"43,560 square feet Ex. The Jones farmhouse was on 10 acres. Their parcel had 435,600 square feet.
Question:
" active fraud.
Answer:
"Intentional misstatement of a material fact Ex. ""Sure, the foundation is perfectly safe!"" Lisa said,
even though she knew full well that there was a crack the size if Toledo in it.
Question:
" act of waste.
Answer:
"Abuse of a property by a person who holds possession through a life estate Ex. When Minerva
inherited the historic mansion and turned it into an illegal video gaming parlor, this was an act of
waste that caused her to lose title to the property.
Question:
" actual notice.
Answer:
"Express notice given directly to a person Ex. Karen told her neighbors she would be moving; this
was actual notice.
Question:
" addendum.
Answer:
, "An addition to a real estate contract that's added before contract acceptance Ex. Steve decided to
ask for the washer and dryer after all, so he asked his broker to write up an addendum to the sales
contract.
Question:
" adjustable rate mortgage (ARM).
Answer:
"A mortgage with a rate that adjusts based on changes in a market index Ex. Caleb had a 5/1 ARM.
His loan had a fixed interest rate for the first five years, and after 5 years, it could change annually
depending changes to the market index.
Question:
" adjusted basis.
Answer:
"The final basis for taxing purposes computed by taking acquisition costs plus capital improvements
and subtracting depreciation taken Ex. When Mark computed the adjusted basis in his property, he
had to subtract $10,000 in depreciation he had taken over the years.
Question:
" adjustment.
Answer:
"The dollar value or percentage added to or subtracted from the sales price of a comparable to arrive
at an indicated value for the subject Ex. Whether the adjustment is made for a "good" or a "bad"
feature, it is made to the comparable, not to the subject.
Question:
" adjustment date.
Answer:
"The date on which the interest rate changes on an adjustable rate mortgage. Ex. Karey made sure to
refinance before her adjustment rate. Rates had dropped and she could get a better rate than the one
